Navigating the Changes: Understanding the July 2023 Update to “Persons with Management or Control” in Australian Childcare

The Australian childcare sector is constantly evolving. In the wake of the 2019 National Quality Framework (NQF) Review, the sector has experienced a raft of changes designed to improve centre-based services. As part of this ongoing transformation, childcare providers need to be aware of the upcoming changes to the definition of “Persons with Management or Control” (PMC), slated for implementation on 1 July 2023.

Expanding the Definition

The changes primarily involve an expansion of the definition of PMC. This alteration aims to ensure that regulatory authorities can effectively assess the suitability of all individuals who wield significant influence, responsibility, or authority over a provider’s services.

Generally, Persons with Management and Control (PMCs) can encompass individuals in the following positions:

  1. Executive officers
  2. Members of the board
  3. Office holders in the company
  4. Partners involved in a partnership
  5. Members of the corporate body
  6. Members or partners in the governing body of the organisation
  7. Directors of the service
  8. Managers of the service
  9. Authorised supervisors
  10. Individuals from external management agencies
  11. Persons occupying management positions
  12. Individuals designated as a “responsible person” on behalf of a registered charity.

Any individual performing these roles for a provider is automatically considered a PMC. It is impossible to exclude someone from being a PMC if they carry out these roles.

Starting from 1 July 2023, the definition will be expanded to include:

– A person in a management position of the business, with the authority or responsibility for, or significant influence over, decisions affecting the delivery of children’s education and care (such as a state/territory or area manager).

Implications of the Expanded Definition

With the widened definition of Persons with Management and Control (PMC), certain approved providers may not see any alterations in the individuals who satisfy the PMC criteria. Nevertheless, it is possible that the expanded definition from 1 July 2023 will include individuals who are part of or connected to some providers, and who would now be classified as PMCs for the first time. This change could be particularly relevant for larger providers, with individuals in positions like state, territory, or area managers.

Preparing for the Change

As the impending changes draw closer, it’s crucial for approved providers to prepare themselves. Here’s a recommended course of action:

– Review if the information about the approved provider, including the Persons with Management and Control (PMCs), currently on record with the regulatory authority, is up-to-date
– Determine if there are any additional individuals who will fall under the expanded PMC definition once it takes effect from 1 July 2023
– Inform the regulatory authority promptly after 1 July 2023 if such individuals are identified as PMCs for the provider

If providers have ensured that all individuals who satisfy the expanded definition are notified to the regulatory authority, no further steps need to be taken. However, it’s mandatory for the approved provider to inform the regulatory authority within 14 days of any PMC’s appointment or removal, or within 14 days of learning about such an event, as per sections 173 of the National Law and 174 of the National Regulations.

For those who qualify as a PMC under the new definition upon its implementation, a transitional clause applies. This clause acknowledges the individual as a PMC from 1 July 2023, and the approved provider must inform the regulatory authority about this PMC appointment by 15 July 2023.

To sum up, the upcoming July 2023 amendments to the “Persons with Management or Control” definition represent a significant step in the continuing development of Australia’s childcare sector. By comprehending these changes and preparing in advance, approved providers can guarantee they maintain high-quality services in compliance with regulatory standards. Keep informed, stay prepared, and persist in nurturing the growth of our children in the most effective manner.

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